Teachers Mutual Bank shows global leadership with 5.39% profits to community investment

  • 15 December 2016

    Teachers Mutual Bank shows global leadership with 5.39% profits to community investment 

    Teachers Mutual Bank community investment of 5.39% pre-tax profits as measured by the LBG is ten times the Australia and New Zealand average, seventeen times the AU & NZ finance and insurance sector average and five times the international average. 

    The LBG - London Benchmarking Group - is the global standard for measuring and benchmarking corporate community investment. It covers the full range of contributions (cash, time, in-kind donations and management costs) made to community causes. 

    In FY2016, Teachers Mutual Bank’s $2.4 million community investment of 5.39% of pre-tax profits (NPBT) is equal to 8% of profits after tax (NPAT).


    2016 London Benchmarking Group (LBG)  results

    Average score

    TMB score

    Difference of TMB to the Average
    LBG International Review (2016) 168 companies reporting (includes Au&NZ)

    $ Contribution as a % of pre-tax profit (NPBT)

    1.04%

    5.39%

    5.2

    $ Contribution per employee

    $601

    $4,542

    7.6

    Contribution as % of total revenue

    0.17%

    0.79%

    4.6
    LBG Australia and New Zealand Review 2016 (Au&NZ) 41 companies reporting 

    $ Contribution as a % of pre- tax profit (NPBT)

    0.56%

    5.39%

    9.6

    $ Contribution per employee

    $831

    $4,542

    5.5

    Contribution as % of total revenue

    0.14%

    0.79%

    5.6

    % of community investment spent on education and young people

    15.2%

    93.4%

    6.1
    LBG Au&NZ Review 2016 -  Financial Services and insurance sector (9 companies reporting)

    $ Contribution as % of pre-tax profit (NPBT)

    0.32%

    5.39%

    16.8

    $ Contribution per employee

    $684

    $4,542

    6.6

    Contribution as % of total revenue

    0.15%

    0.92%

    6.1

    % of community investment spent on education and young people

    15%

    93.4%

    4.8


    Of the LBG Au&NZ 41 total, 9 (22%) are financial services and insurance sector;  

    NAB, ANZ, Australian Unity, Medibank, Suncorp Group, Toyota Financial Services, Teachers Mutual Bank, GMHBA

    Of the LBG  International 178 members, 38 (21%) are financial services. The 178 includes 41 Au&NZ members

    ANZ, Arab African International Bank, Australian Unity,  Aviva, AXA, Banco Santander, Baninter, Barclays, BBVA, Capital One, CUA, Deutsche Bank,  GMHBA, HSBC, ING,  Intesa Sao Paolo, Investec, Maybank, Medibank,  NAB, Nationwide, Provident Financial, RBS,  Reale Seguros, Rothschild, Santader UK, Schroders, St James Place,  Standard Chartered, Standard Life,  Suncorp, Teachers Mutual Bank, Toyota  Finance,  UBS, Unicredit,  Zurich

    LBG is the global standard for measuring and benchmarking corporate community investment. The LBG model provides a comprehensive and consistent set of measures for corporate community investment professionals to determine their organisation's contribution to the community, including cash, time and in-kind donations, as well as management costs.

    Five year reporting trends under LBG, 2012-2016

    Five year reporting trends under LBG, 2012-2016

    • Since 2012, TMB’s net profit before tax (NPBT) increased 39%, whilst community investment increased by 78%.
    • The amount of profit  invested in the community rose 29% (from 4.2% to 5.4%) 
    • The gap between TMB and the AU&NZ finance sector’s investment rose from 10 times to 17 times 

    About the LBG  

    LBG is the global standard for measuring and benchmarking corporate community investment.

    The LBG model provides a comprehensive and consistent set of measures for corporate community investment professionals to determine their organisation’s contribution to the community, including cash, time and in-kind donations, as well as management costs. Recognised around the world, the framework is integrated into investor ratings like DJSI and supports reporting standards like GRI.

    Data is taken from the LBG report provided to Teachers Mutual Bank, and public data from the 11th LBG Annual Review of Community Investment 2016 (Australia and New Zealand) and the LBG International report 2016 - Driving Community Investment. TMB data is FY2016. 

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